IV.4. Resolutions Approving Water, Sanitary Sewer, Refuse Collection, Recycling, Organic Recycling and Parking Rates Effective January 1, 2023; Bishop
November 1, 2022 Council Report 2022-104
APPROVE WATER, SANITARY SEWER, REFUSE COLLECTION
RECYCLING, ORGANIC RECYCLING AND PARKING RATES
Proposed Action
Staff recommends adoption of the following motions:
Move to approve Resolution 2022-074 “Increasing Water and Sanitary Sewer Rates Effective January 1, 2023”.
Move to approve Resolution 2022-075 “Increasing Recycling and Organic Recycling Rates and Implementing Every
Other Week Refuse Collection Rates Effective January 1, 2023.”
Move to approve Resolution 2022-076 “Increasing Parking Rates Effective January 1, 2023”
Overview
Water and Sanitary Sewer Rates
The water and sewer fund budgets have been reviewed for 2023. The 2023 budget includes conservative assumptions
on the amount of water and sewer that will be used by customers. Both funds have proposed increases based on
operational needs, capital needs and debt repayment. The water fund and sanitary sewer funds are both proposing rate
increases of approximately 7.0%.
The City previously conducted a water and sanitary sewer rate study for the years 2016 through 2020. The study
implemented flat rates based on meter size and tiered consumption rates for water users, which continue in 2023. The
newly proposed rates are intended to have a limited impact on utility users.
Refuse, Recycling and Organic Recycling Rates
The refuse fund budget has been reviewed for 2023. New rates and rate increases are being proposed for operational
needs. The current refuse collection rates remain unchanged from 2022. A new option for every other week pick up is
also being proposed. The City has a five year contract with an outside service provider to provide recycling and
organic recycling. Rates are being increased based on that contract.
Parking Rates
The Parking fund budget has been reviewed for 2023. An increase in parking rates will help support the cost of
maintenance and enforcement of the city owned municipal lots and parking ramp. Rate increase of approximately 4%
are being proposed for monthly, quarterly and annual permits.
Primary Issues to Consider
• How will the rates affect the residents and businesses in the City of Hopkins?
• What are the proposed capital improvement projects?
Supporting Information
• Staff Analysis
• Resolution No. 2022-074
• Resolution No. 2022-075
• Resolution No. 2022-076
____________________________________
Nick Bishop, CPA
Finance Director
Financial Impact: Water $156K, Sewer $226K, Refuse $28K, Parking $ 4K Budgeted: Yes
Source: Water, Sewer and Refuse Customers Related Documents: ERP and CIP Notes:___________
Rate Increases and Effect on Residential and Commercial Customers
2022 2023 Percent
Current Proposed Increase
Refuse Collection
35 Gallon - Every Other Week N/A 13.85 100.00%
35 Gallon 18.85 18.85 0.00%
65 Gallon 22.85 22.85 0.00%
95 Gallon 26.30 26.30 0.00%
Pick up - Once in Two Weeks
Recycling 5.25 5.50 4.76%
Organic Recycling 5.50 5.75 4.55%
Refuse, Recycling and Organic Recycling Rates
2022 2023 Percent
Current Proposed Increase
Flat Rates Per Meter Per Month
Residential - 5/8" meter 3.12 3.34 7.05%
Residential - 1" meter 3.12 3.34 7.05%
Apt/Commercial - 1-1/2" to 2" meter 6.25 6.69 7.04%
Apt/Commercial - 3" meter 9.38 10.04 7.04%
Apt/Commercial - 4" meter 12.48 13.35 6.97%
Apt/Commercial - 6" meter 18.73 20.04 6.99%
Consumption Rates, Per 1,000 Gallons
Residential and Multi-Family
0 - 3,000 gallons 3.20 3.42 6.87%
3,001 - 5,000 gallons 3.68 3.94 7.07%
5,001 and over 4.22 4.52 7.11%
Commercial
0 - 10,000 gallons 3.06 3.27 6.86%
10,001 - 20,000 gallons 3.50 3.75 7.14%
20,001 and over 4.04 4.32 6.93%
Irrigation - all usage 3.82 4.09 7.07%
Production meter 3.22 3.45 7.14%
Sanitary Sewer 7.08 7.58 7.06%
Water and Sanitary Sewer Rates
Actual 2022 Proposed
2023 $ Increase % Increase
Single Family Residential (Lower User)
Water (1,500 Gallons)7.92$ 8.47$ 0.55$ 6.94%
Sewer (1,500 Gallons)10.62$ 11.37$ 0.75$ 7.06%
Total Monthly Bill 18.54$ 19.84$ 1.30$ 7.01%
Single Family Residential (Median User)
Water (4,000 Gallons)16.40$ 17.54$ 1.14$ 6.95%
Sewer (3,000 Gallons)21.24$ 22.74$ 1.50$ 7.06%
Total Monthly Bill 37.64$ 40.28$ 2.64$ 7.01%
Single Family Residential (High User)
Water (8,800 Gallons)36.12$ 38.66$ 2.54$ 7.03%
Sewer (4,800 Gallons)33.98$ 36.38$ 2.40$ 7.06%
Total Monthly Bill 70.10$ 75.04$ 4.94$ 7.05%
Impact on Low, Median and High Residential User
2022 2023 Percent
Current Proposed Increase
Daily 3.00 3.00 0.00%
Monthly 39.00 41.00 5.13%
Quarterly 92.00 96.00 4.35%
Annual 302.00 314.00 3.97%
Overnight 41.00 43.00 4.88%
Electric car - Quarterly 115.00 120.00 4.35%
Electric car - Annual 403.00 419.00 3.97%
Parking
Actual 2022 Proposed
2023 $ Increase % Increase
Commercial Property (Low User with a 1" Meter)
Water (3,000 Gallons)15.43$ 16.50$ 1.07$ 6.93%
Sewer (3,000 Gallons)21.24$ 22.74$ 1.50$ 7.06%
Total Monthly Bill 36.67$ 39.24$ 2.57$ 7.01%
Commercial Property (High User with a 2" Meter)
Water (35,000 Gallons)132.45$ 141.69$ 9.24$ 6.98%
Sewer (35,000 Gallons)247.80$ 265.30$ 17.50$ 7.06%
Total Monthly Bill 380.25$ 406.99$ 26.74$ 7.03%
Impact on Low and High Commercial User
What are the proposed capital improvement projects?
Over the next five years we have identified $11,203,000 and $6,475,000 in capital infrastructure projects related to the
water and sewer funds, respectively. The projects are for ongoing utility improvements related to road reconstruction,
maintenance and equipment needs. The complete detail for all scheduled capital improvements can be found in the
Capital Improvement Plan and Equipment Replacement Plan.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2022-074
INCREASING WATER AND SANITARY SEWER
RATES EFFECTIVE JANUARY 1, 2023
WHEREAS, the City of Hopkins has established Ordinance No. 92-712 Sewer and Water Utility
rates, City Code section 40-22 which defines water rates and section 40-24 which defines sanitary sewer
rates; and
WHEREAS, the ordinances authorizes water and sanitary sewer to be set forth by
council resolution; and
WHEREAS, utility rates were analyzed to determine the long-term viability of the water and
sewer fund; and
WHEREAS, it was determined that current rates are insufficient to meet operational and capital
needs;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins hereby
sets the service charge for the Water and Sanitary Sewer Utilities at the following rates to be paid to the
City upon billing therefore as follows:
The water service usage charge be set at the rates shown.
Flat Rates
Residential – 5/8” meter 3.34
Residential – 1” meter 3.34
Apt/Commercial – 1-1/2” to 2” meter 6.69
Apt/Commercial – 3” meter 10.04
Apt/Commercial – 4” meter 13.35
Apt/Commercial – 6” meter 20.04
Residential and Multi-Family
0 – 3,000 gallons 3.42
3,001 – 5,000 gallons 3.94
5,001 and over 4.52
Commercial
0-10,000 gallons 3.27
10,001 – 20,000 gallons 3.75
20,001 and over 4.32
Irrigation – all usage 4.09
Production Meter 3.45
All water rates are per 1,000 gallons of water consumed.
The sanitary sewer service charge for all classes of users on the system at $7.58 per 1,000 gallons
of water used.
EFFECTIVE DATE: The provisions of this resolution shall be effective January 1, 2023.
Adopted by the City Council of the City of Hopkins, Minnesota, this 1st day of November 2022.
_______________________________
Patrick Hanlon, Mayor
ATTEST:
___________________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2022-075
INCREASING RECYCLING AND ORGANIC RECYCLING RATES AND IMPLEMENTING
EVERY OTHER WEEK REFUSE COLLECTIONS RATES EFFECTIVE JANUARY 1, 2023
WHEREAS, the City of Hopkins has established Ordinance No. 92-707 Solid Waste
Management and City Code section 34-28 which defines billing rates; and
WHEREAS, the City Code authorizes billing rates to be set forth by council resolution; and
WHEREAS, utility rates were analyzed to determine the long-term viability of the refuse fund;
and
WHEREAS, it was determined that current rates are insufficient to meet operational needs;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins hereby
sets the service charge for refuse collection, recycling and organic recycling at the following rates to be
paid to the City upon billing therefore as follows:
Refuse Collection (per month)
35 Gallon – Every Other Week $13.85
35 Gallon $18.85 (no change)
65 Gallon $22.85 (no change)
95 Gallon $26.30 (no change)
Recycling (per month) $5.50
Organic (per month) $5.75
EFFECTIVE DATE: The provisions of this resolution shall be effective January 1, 2023.
Adopted by the City Council of the City of Hopkins, Minnesota, this 1st day of November 2022.
_______________________________
Patrick Hanlon, Mayor
ATTEST:
___________________________________
Amy Domeier, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2022-076
PARKING PERMIT RATE INCREASE
WHEREAS, the City of Hopkins has established Ordinance No. 91-1310, City Code
section 1310.11 which defines parking permit rates and allows adoption of fees through council
resolution, and,
WHEREAS, it is estimated the present parking permit rates are not sufficient to cover
operating and enforcement expenses over the next year and will not provide sufficient funding for
capital improvements to the municpal lot and parking ramp;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins
hereby sets the parking permit fees at the following rates:
Parking Permits Electric Car Permits
Annual $314 Annual $419
Quarterly $ 96 Quarterly $120
Monthly $ 41 Monthly not available
Daily $ 3 (no change) Daily not available
Overnight $ 43
EFFECTIVE DATE: The provisions of this resolution shall take effect January 1, 2023.
Adopted by the City Council of the City of Hopkins, Minnesota, this 1st day of November 2022.
_______________________________
Patrick Hanlon, Mayor
ATTEST:
___________________________________
Amy Domeier, City Clerk